Budget 2024: Huge row erupts over Rachel Reeves ‘raising mortgage rates’ by borrowing billions [Video]

Rachel Reeves was hit with a huge row just days before the Budget over whether borrowing billions more would push up mortgage bills for longer for millions of households across Britain.

The Chancellor has unveiled new fiscal rules which are expected to be used to borrow tens of billion more for investment schemes in transport and other infrastructure projects in a bid to boost the UK’s economic growth.

Shadow Chancellor Jeremy Hunt said: “Rachel Reeves announced her plans to fiddle with her fiscal rules and borrow up to £50 billion more to fund further reckless spending.

“Let me clear; the advice I received consistently whilst Chancellor was that any additional borrowing would mean higher interest rates for longer.

“Meaning if the Chancellor goes ahead with £50 billion of extra borrowing there will be misery for millions of mortgage holders across the country.”

But Treasury minister James Murray flatly rejected the Conservative claim.

Asked whether families …